Market Study for Digitally Printed Packaging and Labels

LEATHERHEAD, UK—The global market for digitally printed packaging and labels is projected to reach US $2.4 billion in 2009. Expanding by nearly three times, this market is forecast to grow by an overall 182 percent and a healthy CAGR of 23 percent to reach close to US $6.8 billion by 2014, according to a new study by Pira International.

Based on primary research and analysis, “The Future of Digital Printing for Packaging” breaks down the global market by packaging type, end–use market, application, geographic region, and production process, with five-year forecasts to 2014. In addition, the study aims to clearly lay down the strengths and weaknesses associated with digital print for packaging over the 2009 to 2014 period. The study also provides a detailed overview of key demand drivers and trends, along with an analysis of the competitive landscape for the industry and the business opportunities for equipment and consumables suppliers.

Digital printing refers to any technology that regenerates the image to be reproduced every time a copy is to be printed. The image carrier is either dynamic (as with toner) or virtual (as with inkjet). Although every digitally printed impression appears similar, they are essentially different. Despite having some set-up time, digital printing eliminates the need for prepress and expensive conventional press makeready, thereby greatly reducing costs. The ability to print on a wide variety of substrates also ensures the versatility of digital presses over other printing methods.

A major driver for digital printing in the packaging and label segments is the need for customization and shorter press runs, in order to limit the amount of dormant inventory. Digital, on-demand printing of labels and packages has now become critical in the context of the current economic downturn and waste reduction initiatives, since lesser material, energy, and inks are used. Digital artwork files in standard formats (Quark, Adobe Illustrator, PDF, Adobe InDesign and EskoArtwork) can be received online and run after a quick preflight and imposition. Thus, jobs that used to take a few days earlier can now be turned around in an afternoon, in keeping with the just-in-time supply chain sought by brand owners.

With regard to the global market for digital printed packaging and labels by sector, Pira International expects digital usage in flexibles to grow by four to five times during the 2009 to 2014 period, driven by the brand owners’ search for innovation and the converters’ desire for faster press speeds. Some of the growth may however come at the expense of folding cartons, whose growth has slowed over the past few years, with brand owners switching to purely flexible packaging options in some cases.

In the end-use segments, food and beverages has been the strongest performer because of lower digital penetration levels earlier. Penetration is expected to rise in the near future due to growth in general production packaging and labelling. According to Pira’s forecast, in 2009 the sector will generate $606 million in global sales, and this will rise to $2.1 billion by 2014, growing appreciably at 28 percent annually in constant terms.

For more information concerning the study, visit www.pira-international.com.